CIMB lifts target price of ARA ASSET to $1.75
CIMB said the 1Q results of ARA Asset Management were commendable -- a 35% jump in net profit to $20 million and a 24% rise in assets under management to S$20.8 billion.
Total revenue rose 26% to S$34.3 million in 1Q2012 from S$27.2 million in 1Q2011, largely due to improved management fees as well as higher acquisition and performance fees.
CIMB analyst Tan Siew Ling said the fund-raising environment was tough.
Capital raising for ARA's Asia Dragon Fund (ADF II) had been fairly slow (unchanged from last quarter’s US$400m).
Management remains confident of its US$1bn target.
The analyst noted disappointment over the absence of a bonus issue this time round and the fairly slow DF II capital-raising.
The key catalyst for the stock remains the listing of its new RMB REIT, she wrote.
CIMB’s target price for the stock is lifted to $1.75 (previously $1.74), compared to the recent trading price of $1.47.
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Lim & Tan expects buying interest in MIDAS closer to 30-cent level
Following a profit warning from Midas Holdings, Lim & Tan Securities has cut its full year estimate from Rmb187mln to Rmb159mln, representing a 15% yoy decline.
This also translates into a forward PE of 14x which is about in line with its peers trading in Hong Kong.
Lim & Tan said the stock, which has been trading between 30 and 45 cents in the past 12 months, could see buying interest around the 30 cents level.
Reason: management’s expectation of a pick-up in order momentum in 2H 2012.
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ASL MARINE earned S$8.0 m net profit for 3Q12
Its gross profit grew by 53% to S$16.0 million but earnings were slightly lower by 1% due to higher net operating expenses.
It enjoyed increased contributions from all three business segments, which boosted the total revenue by 32% to S$113.8 million.
Its outstanding shipbuilding order book from external customers and longterm shipchartering order book stood at S$642 million and S$57 million, respectively, as at 31 March 2012.
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